The DECO 2014 TULIP CMBS is made up of two loans made by the German bank: one to PPF Real Estate Holding and the other to a joint venture between Mount Kellett Capital and Sectie 5 Management.
The CMBS will be secured against 20 retail (54.6%), office (42.2%) and mixed-use (3.3%) properties with a combined valued of €438.85m. They have a weighted average lease term of 4.6 years, total 238,048 sq m and are 85.8% occupied.
The capital structure of the CMBS is:
CLASS €m LTV
A [170.00] 38.9%
B [20.00] 43.4%
C [20.00] 48%
D [20.00] 52.6%
E [20.04] 57.2%
The deal will have an expected maturity of 27 July 219 and a legal final maturity of 27 July 2024.
Deutsche Bank will retain a 5% interest in each class of note. Pricing is expected at the end of the month and it is expected to close in mid-October. Standard & Poor’s and DBRS are due to rate the CMBS.
The initial €130.15m loan to PPF funded its acquisition of a portfolio of nine office and retail properties in July at a margin of 500 basis points over three-month Eurobor.
The €125m loan to Mount Kellett and Sectie 5, closed in May, financed 11 shopping centres and was priced at 310 basis points over three-month Euribor. The investors bought most of the assets from Corio in January.